Insurance regulator IRDAI has exempted life insurance companies from issuing policy document and copy of the proposal form in physical form for policies issued this fiscal (2020-21).
In other words, the companies have been permitted to issue policy documents in electronic format.
The exemption, however, is subject to certain conditions, including getting an express consent of the policyholder to receive electronic policy bond. However, “if a policyholder insists on hard copy, the same has to be issued without any charges,” the regulator said.
IRDAI took the decision in the wake of emerging situation of COVID-19 pandemic and life insurers “expressing difficulties in printing and dispatch of policy documents,” said V. Jayanth Kumar, chief general manager, IRDAI.
The desirability to adopt digital means of doing business in the interests of policyholders and other stakeholders was also behind the decision, he said in a circular.
Other conditions include life insurers confirming the date of receipt of electronic policy document by the policyholder through Pre-Issuance Verification Call (PIVC) or other means and preserving the proof so that Free Look period may be calculated from that date.
Thirty days Free Look period should be allowed for all such electronic policy documents. Return of electronic policy document by mail by policyholder with “clear intention of cancellation of policy shall be valid for Free Look cancellation.” The policy document should be sent to the email id submitted by the proposer.
Nod for e-returns
The regulator has also allowed life insurance companies to upload regulatory returns through Business Analytics Project (BAP) module without physical filing and submit a soft copy through email for returns up to March 31 2021.
They, however, need to keep physical copies ready for filing at a later date that IRDAI will stipulate. This decision follows life insurers expressing difficulty in filing hard copy of Quarterly Investment Returns in view of pandemic and Work From Home (WFH) situation, IRDAI said in another circular.